Reid: No Social Security checks without debt deal

The Social Security Act was signed into law in 1935 by FDR, the centerpiece of his New Deal Program. It was set up as a pay as you go program, where each year's FICA (Federal Insurance Contribution Act) taxes paid for that year's benefits. I.e. the program was not supposed to run a surplus.

That changed in 1983, when Alan Greenspan chaired a commission to address coming demographic problems in the program. Congress raised the FICA tax to 15.3% and the program started to run a surplus. That surplus amounts to over $2 trillion as of now.

However, under federal law, any program running a surplus had to invest it in government bonds. A special bond, the class E, is used for the Social Security surplus. All of the $2+ trillion has been spent and replaced by government IOU. I have been saying for years that the money is gone, and liberals and federal government lovers have been telling me I'm wrong. This proves it. The money is gone.

Baby boomers, you paid into SS at an elevate rate for most of your adult lives. You paid for your parents' benefits, and you prepaid for your own. You were stupid and you trusted government/politicians. They screwed you. You have nothing to show for all your hard work and high taxes except a $2 trillion IOU from some politicians.

Now let's all go out and lobby for more government, more taxes, more programs. Oh, and more politicians.

Wonder if that was in light of the pressure to sign with the UN on Agenda 21...because he didn't....but he did try to hear from the american people so....idk. but I'll go look that up because now I'm curious.

ETA:oh, yup. That's no good. Sounds like he was trying to test the waters with that speech.

"But don't you think it's better for a girl to be preoccupied with sex than occupied?" -The Moon Is Blue(1953)“Ninety-nine percent of who you are is invisible and untouchable.” ~Richard Buckminster Fuller"Does koala bear poop smell like cough drops?" ~Tom Robbins (Jitterbug Perfume) [link to www.mpp.org] medpot:sleepz:~**Ron Paul 2012**~

Echoing President Barack Obama's warning, Senate Majority Leader Harry Reid says Social Security payments would stop if there is no deal to raise the government's borrowing limit by Aug. 2.

Speaking on the Senate floor, the Nevada Democrat said flatly that payments for veterans benefits and the military, as well as Social Security, would cease if the government defaults on its obligations

Sound like extortion to me... They should be handcuff and hauled off to Prison....

Quoting: NoSilence

The ones that should be in handcuffs is the few republicans are completely worng in holding the country hostage so the rich don't have to pay taxes. 80% of us think the rich should pay more and cut stupid tax breaks and end the bs.

Echoing President Barack Obama's warning, Senate Majority Leader Harry Reid says Social Security payments would stop if there is no deal to raise the government's borrowing limit by Aug. 2.

Speaking on the Senate floor, the Nevada Democrat said flatly that payments for veterans benefits and the military, as well as Social Security, would cease if the government defaults on its obligations

This is just all a bunch of bull to get there way. They know that those against raising the debt limit and taxes can not let them cut off the social security checks and those against will have to buckel. What a joke.This is our elected officials in power and playing a high stakes game. So is this a bluff. Makes me ill if we don't take back our country soon I don't know if we can stand another 4 years.

How did people survive before social security and welfare? Not the ones who farmed, but those in the city. Were there other programs? Did they starve to death? Anybody know the death rate due to poverty back then? I'll Google it, but if anybody knows, it would be greatly appreciated.

Quoting: Anonymous Coward 1380843

Yeah, if we all had the $$ we individually put intothe Social Security Retirement Program and had put it into savings or investments, we might have some of the $$ you are inferring we might be unjustly expecting. In the not too distant past, people went to "poor houses". There they were worked like modern day slaves and survival was the name of the game. People traded, bartered, and created wealth out of the sweat of their own making. Government interference was by design and now, again, this effort to foment civil unrest could be an effort to marshal in martial law. Obummer is working harder to realize a United Nations agenda, rather than preserving our United States. (imho)

This is true...Of course, that's if the government has the authority to let 100M checks bounce. If not, the money will have to come from somewhere else. I'm just wondering what would happen in the general population if they did withhold funds from SS/Vets/military pensions. It's curious indeed.

"But don't you think it's better for a girl to be preoccupied with sex than occupied?" -The Moon Is Blue(1953)“Ninety-nine percent of who you are is invisible and untouchable.” ~Richard Buckminster Fuller"Does koala bear poop smell like cough drops?" ~Tom Robbins (Jitterbug Perfume) [link to www.mpp.org] medpot:sleepz:~**Ron Paul 2012**~

This is true...Of course, that's if the government has the authority to let 100M checks bounce. If not, the money will have to come from somewhere else. I'm just wondering what would happen in the general population if they did withhold funds from SS/Vets/military pensions. It's curious indeed.

Quoting: moondust

I live on the NW corner of PHX, lots of retired folks - in the 200,000+ range, drug stores on every corner, more medical facilities than u can count - its a major industry here - watching the fall out will b a mind f...

I know a lot of people that will b hurt. There seems 2 b a attitude that seniors r worried and scared about all this - no, they r pissed off, we r a group that votes at a high rate. So I say "bring it".

Echoing President Barack Obama's warning, Senate Majority Leader Harry Reid says Social Security payments would stop if there is no deal to raise the government's borrowing limit by Aug. 2.

Speaking on the Senate floor, the Nevada Democrat said flatly that payments for veterans benefits and the military, as well as Social Security, would cease if the government defaults on its obligations

Well now we know how much these supposed liberals care for the poor, weak, old, and downtrodden.

They're using these people as PAWNS to get their way. They know that if they announced "Without a debt deal, we're going to stop paying Halliburton for their war services" we'd all say "yahoo, let it ride."

So they're going to play a game of 'chicken' with people's lives. Utter and complete bankruptcy of the soul. That's your liberals for you.

Echoing President Barack Obama's warning, Senate Majority Leader Harry Reid says Social Security payments would stop if there is no deal to raise the government's borrowing limit by Aug. 2.

Speaking on the Senate floor, the Nevada Democrat said flatly that payments for veterans benefits and the military, as well as Social Security, would cease if the government defaults on its obligations

Well now we know how much these supposed liberals care for the poor, weak, old, and downtrodden.

They're using these people as PAWNS to get their way. They know that if they announced "Without a debt deal, we're going to stop paying Halliburton for their war services" we'd all say "yahoo, let it ride."

So they're going to play a game of 'chicken' with people's lives. Utter and complete bankruptcy of the soul. That's your liberals for you.

Quoting: Anonymous Coward 1299999

If this country continues on the way it has been the people will forget in a decade or so.